Asking financial advice from members of the ESEE board

[DH1]

selling your silver can also be a hassle. Precious Metals are considered "collectibles" under the tax code and are subject to a 30% capital gains rate regardless of how long you've held them. If you were unlucky enough to ever be audited and didn't have solid records documenting your purchase prices, you could conceivably be stuck paying 30% on the entire amount sold, rather than just on the gains. Also, most dealers have a buy price at some percentage under the current spot price.

So if I were to convert some silver into paper dollars at a local dealer, there would be paperwork to fill out there, or would I have to submit the transaction info on my tax returns?

Thanks for the info by the way.

 

[inkynate]

So if I were to convert some silver into paper dollars at a local dealer, there would be paperwork to fill out there, or would I have to submit the transaction info on my tax returns?

My understanding is that under current law dealers are not required to report small purchases from individuals to the IRS. I have not personally ever sold any bullion, but I suppose the dealer would have some kind of paperwork to complete just to record the transaction for his books and create a receipt.
Currently, it is your responsibility to report any gains and pay any applicable taxes when filing your return. The new 1099 requirements, if they stand and go into effect in 2012, would create automatic reporting for all transactions over $600, discouraging many would be "tax evaders." lol...

 

[RABII]

Coinflation is an excellent website to provide you with silver coin pricing. Remember too, unless a coin is 'rare' or has some other numismatic value, it is only worth its' weight in silver. In other words, the actual silver 'melt' value in these coins is what gives them their worth. The term 'junk' applies because it is the silver content that matters, nothing else. Today, silver closed at more than $27 dollars an ounce, thus a silver quarter was worth $5 dollars (apiece) and a silver dime was worth $2 dollars because of their respective silver content. Another thing, a dealer will give you a quote (if you're selling) at around 70-75% (+-). I tend to keep smaller coin denominations on hand for their lower trade values. It would be difficult in hard times to break-up, or make change, for a 1 oz. gold coin, particularly when its' value would be even higher in times of economic disaster. You've gotten plenty of good advise in this thread so GOOD LUCK!

 

[Expatriated]

So if I were to convert some silver into paper dollars at a local dealer, there would be paperwork to fill out there, or would I have to submit the transaction info on my tax returns?

Thanks for the info by the way.

No paperwork. I've done this many times. Completely anonymously. I have to give up more information to buy a pack of batteries at RadioShack.

If you have gains/losses on your sale, it is up to you to report it on your taxes. Since there is no record of the purchase or the sale price, you are on your honor to put down the correct prices representing the gain/loss.